Luxembourg ranks 2nd in Allianz Euro Monitor 2012

20 December, 2012

Allianz has released the new 2012 edition of its Euro Monitor study on the ability of each of the 17 Member States of the eurozone to develop sustainable growth at the national level, devoid of macroeconomic imbalances, in order to contribute to the stability of the eurozone as a whole. The study is based on a dashboard constructed from fourteen quantitative indicators, divided into four categories: sustainability of public finances; competitiveness and domestic demand; employment, productivity and efficient use of resources, as well as private and external debt.

According to the authors of this study, a good national performance in these four areas is essential for a country to be able to capture the confidence of financial markets and to ensure a degree of prosperity to citizens. Scoring: 1-4 (Poor); 5-7 (Average); 8-10 (Good). Germany leads the overall ranking with an overall score of 7.7, followed by Luxembourg (7.0) and Austria (7.0). Luxembourg has maintained its ranking from the previous edition of the study.

As in the previous edition in 2011, no country in the eurozone has really found its way to a totally sustainable growth, devoid of imbalances (this requires score of more than 8.0, according to Allianz). Across three of the four categories (insufficient data for the 4th), Luxembourg tied for 1st (9.3) with Estonia on sustainability of public finances; 7th (5.8) in competitiveness and domestic demand (the labour cost indicator brings Luxembourg down); 4th (5.8) in employment, productivity and efficient use of resources, with low score in labour productivity outweighing its other benefits here.

To  read the full report, please click here